Credit Card Fees

The ultimate aim in managing your credit card is to avoid ever having to pay credit card fees. Follow our tips and guides to help ensure your credit card transactions are free free.

Credit card fees and charges are responsible for a lot of consumer aggravation. More and more people are feeling ripped of when they suddenly see some fees they never knew existed on theircredit card statement and the more you learn about them, the better you can protect against the possibility of attracting them yourself.

How you can stay clear of credit card fees and charges.

The cost is staggering. Some $30 billion a year are billed to the accounts of credit card holders in extra fees and charges most people don't know these even exist. Since we are using credit cards for just about any shopping we do, it is becoming more important than ever to use them smartly to your advantage.

As the cost of debt increases everywhere, we too have to fork out more money for our personal debt. We do this by paying increased credit card fees, often hidden in the fine print of a credit card terms contract.

The more you understand about these potential pitfalls, the wiser you can be in managing your card and its associated costs. The following tips will level the field and help you to see the bigger picture. It is a round-up of the most common credit card fees:

Over the limit fee:

The over the limit fee is a silent killer. It's easy to spend more money on your card than allowed. All you need is a holiday purchase or some expensive household item like an LCD TV and you are in danger of going over the allowed limit.

It pays to keep an eye on your spending if you always get trapped with this fee. Another tips is to pay off your credit card in full each month. With Internet banking access there should be no excuse not knowing where exactly you are at with your current card balance. However, since online banking often shows you a delayed account status it would be wise to call your bank if you want to know the exact state of your balance.

Late fee:

Late fees sting consumers a lot and they come dearly. You could be expected to fork out between $25 - $50 if you are lagging behind with your credit card payment. For card holders with several cards this means even more trouble as paying late on the one card will affect your other cards in a snowball motion.

Plus, the card company can actually sting you double for being late by increasing your 'fine.'
Use a diary and mark the payment date each month in big fat red. Even better, pay your card with direct debit to automate the process and never needing to worry of being late.

Cash advance fee:

If you can avoid taking out cash with your credit card, then do so. Cash advance fees are very expensive. If you use an ATM, then more charges are being added to your account for using the system. Unless it's an absolute emergency you shouldn't use this feature at all.

Monthly service fee:

Even a no-annual fee credit card could attract monthly service charges. Usually they range around $5 per account, but can be higher and add up during the year.

Currency exchange fee:

Do you travel overseas a lot? Or are you a frequent online shopper with overseas merchants. If so, keep an eye on your currency exchange fees. Some companies charge you 3 per cent extra in fees. It pays to use the local currency when you make these payments and you should check these charges before having an unwelcome surprise on your account.

Balance transfer fee:

Even if you get a fee-free balance transfer honeymoon period you could be made to pay fees for transferring your balance to a new balance transfer credit card. Depending on the company you're with this could relate to a percentage of the amount you transfer or a set fee.

Merchant surcharge fee:

Many merchants relate some of their costs onto you. Telstra is a classical example. Their credit card surcharge payment fees increase by September the 14th. for credit card payments made on accounts and you need to be aware of these.Merchant surcharge fees can add a lot to your bottom line.

The best way to manage your credit card fees:

The best way to manage your credit card fees is by understanding them and choosing the right card for your circumstances. Always read the small print of credit card terms and if in doubt, speak with your lender and ask questions.

ASIC provide some great tips on avoiding credit card fees from merchants including:

• Pay by EFTPOS instead of credit card if this avoids the fee
• Check with credit card merchant provider (VISA, MasterCard, American Express or Diners Club) charges the lowest fee and pay with that card
• Look at the bills you pay regularly via credit card. If the merchant charges a credit card fee you may be better off having that bill paid from your savings transaction account.

We have written a number of articles covering the topic of Credit Card Fees educating you on action you can take to reduce the amount of fees charged to your card.

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• How To Lower My Credit Card Payments
  

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• How to avoid paying bank penalty fees
  

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• Qantas Hiding It’s Credit Card Fees
  

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• How Do Foreign Service Fees Affect Use-Abroad Credit Cards?
  

  How Do Foreign Service Fees Affect Use-Abroad Credit Cards?

  Foreign service fees could strike you with a nasty surprise after you’ve returned home from your dream holiday. While you are about in the sun you probably neglect to think about money, as long as it is available to you via your card. Don’t fall for the common holiday money traps, learn how.



• How To Minimise Your Credit Card Fees
  

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• How To Minimise Your Credit Card Fees & Charges
  

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• How To Avoid Foreign ATM Fees – The Dreaded $2 ATM Fee
  

  One way to save significant amounts of cash is to avoid foreign ATM fees. You should try to only use ATM’s in your network. Check by phone or SMS to get the location of you’re nearest bank branch or ask them for a free way to withdraw cash while abroad.



• Guide To Reducing Your Bank Fees
  

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• Avoid Paying Credit Card Fees
  

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• How to Avoid Credit Card Merchant Fees
  

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  Find out why credit card surcharges exist and what you can do to avoid (or at least limit) them.



• How to Dispute Credit Cards Fees – and Win
  

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• Cut Credit Card Interest and Fees: ATM Fees, Promotions and Low Rates
  

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• Late and Over Limit Fees
  

  The most responsible credit card user can get away with never paying an annual fee or interest repayment. However, everybody is human and from time to time we can lose track of our credit card balance and expenses.
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  Credit Card Finder has stockpiled the key banks in Australia and listed their ‘Overlimit’ and ‘Late Payment’ fees for your ease.
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  Click here to view these secondary fees.



• Foreign Currency & International Fees for Credit Cards
  

  This article has been created after a high number of requests for international and foreign currency fees from credit card providers.
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  We’ve listed them all on one page to save you the tedious and time consuming effort of scanning each banks terms & conditions to find them yourself.
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  Click here to view the Australian leading banks international fees and charges.



• Ancillary Credit Card Fees & Misconceptions – Be On Guard
  

  Many consumers tend to only focus on the annual fee and interest rates of their credit cards, unaware of secondary charges on their credit card.
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  You can be the most conscientious consumer and pay $0 on interest and fees for the 2 years you’ve owned your credit card. Then, to your surprise you’ve come home from holidays and found $80 of foreign charges on your statement.
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  Situations like these can be avoided if you stay ready on your financial feet.
  -
  Find out more about ancillary charges and how to work around them.






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The Bankwest Lite MasterCard is Australia's cheapest credit card offer, giving you the lowest MasterCard purchase rate of just 10.75% p.a. as well as a long balance transfer offer on your existing credit card balance at 1.99% p.a. for 9 months!






Click here to read the official terms and conditions on the banks website

Editor's Choice: Our Top Credit Cards




Credit Card	Card Details	Interest Rate (p.a.)	Cash Advance Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Interest free days (up to)
Bankwest Lite MasterCard	Editor's Choice: Cheapest Credit Card The lowest stress mastercard, with Australia's lowest MasterCard purchase rate of just 10.75% p.a.	10.75%	21.49%	1.99% for 9 months	$59	55
St George Vertigo	Editor's Choice: Best Bank Low 2.99% for 6 months (reverts to 11.99%) p.a. interest rate and balance transfer rate, from one of Australia's most respected banks.	2.99% for 6 months (reverts to 11.99%)	20.74%	2.99% for 6 months	$55	55
Coles Group Source MasterCard	The Coles Group Source MasterCard has no annual fee, a 0% p.a. balance transfer offer for 6 months, with a rewards program including savings on fuel and FlyBuys Points	19.74%	21.99%	0% for 6 months	$0	62
Citi Clear Platinum Visa	Editor's Choice: Low Interest An excellent low interest credit card offer with 11.49%interest on purchases and 0.99% for 6 months on balance transfers .	11.49%	20.99%	0.99% for 6 months	$49 (First Year, Save $50)	55
Bankwest Zero Platinum MasterCard	Editor's Choice: No Annual Fee Excellent introductory offer with a $0 annual fee for the life of the credit card and a 1.99% p.a. for 9 months on balance transfers	16.99%	16.99%	1.99% for 9 months	$0	55